For a while, it was looking like aerospace stock Boeing (BA) was about to face yet another disaster, with the first strike in nearly two decades looming large, assuming a deal was not made in short order. However, Boeing snatched a win this time, and investors responded accordingly, sending shares up nearly 4% in Monday afternoon’s trading.
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Boeing managed to set up a win with the union by offering up a four-year deal in which wages would increase a full 25%. Though the danger of a strike was not completely averted—the new agreement still has to be ratified, and by Thursday, when the current contract expires—it still looks like a reasonable bet. Nevertheless, the union may still reject the new contract and walk out.
There is some chance that the strike may happen anyway. Reports from the Wall Street Journal note that union leaders were looking for a 40% pay raise over the next four years. And worse yet, Boeing staffers have already made several concessions to Boeing in the past and may no longer be interested in accommodating the company. However, the union did get new retirement benefits, reduced healthcare costs, and a commitment to build new planes in the Pacific Northwest.
New Starliner Problems
Meanwhile, the Starliner capsule has returned to Earth, and apparently, in one piece, a development that will no doubt leave the two astronauts left behind on the International Space Station mildly disapproving. Especially given that they are now several months overdue to return home and will have to wait several more months.
But while the return of the Starliner was a surprisingly simple maneuver—NASA program manager Steve Stich called it a “bullseye landing” that was “darn near flawless”—it was nowhere near so simple for the capsule itself. Several new issues emerged on the way down, starting with “the failure of a new thruster” and “the temporary loss of the guidance system.” It was also considered “too early,” according to a Fortune report, to talk about the next flight in August 2025.
Is Boeing a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on BA stock based on 13 Buys, four Holds, and two Sells assigned in the past three months, as indicated by the graphic below. After a 22.56% loss in its share price over the past year, the average BA price target of $212.71 per share implies 30.55% upside potential.
